TeraWulf Stock Explodes 40% as Google Drops $3.2B for 14% Stake - Mining Play Goes Mainstream

Wall Street's buzzing as TeraWulf just pulled off the mining sector's deal of the decade.

Google's massive $3.2 billion bet rockets its ownership to 14%—sending TeraWulf shares into the stratosphere and signaling Big Tech's full-throated endorsement of Bitcoin's infrastructure backbone.

Energy Meets Algorithms

The search giant isn't just dipping toes—it's diving headfirst into nuclear-powered mining operations. TeraWulf’s zero-carbon energy strategy clearly caught Google’s eye, merging hard infrastructure with scalable tech in a way that pure-play crypto firms rarely achieve.

Market Shockwaves

Traders scrambled as the stock ripped upward on monstrous volume. Institutional money’s finally waking up to mining’s profit potential—better late than never, right? Analysts who’ve dismissed mining as ‘dumb pipes’ are now frantically revising models.

Because nothing makes a skeptic believe in crypto like a 12-zero check from Mountain View.

With the recent addition of $1.4 billion in debt financing, Google increases its investment to approximately $3.2 billion after Fluidstack decided to expand its lease as part of its 10-year deal with TeraWulf.

The added investment raises Google’s stake in the company from 8% to 14% of the total TeraWulf equity ownership. This funding will aid Fluidstack, a Google-backed firm, in developing the data center at TeraWulf’s Lake Mariner campus in New York.

Google’s investment into TeraWulf represents a shift in AI computing, considering Google has made strides to develop its AI and Machine Learning Products, particularly Gemini.

TeraWulf’s Bitcoin mining GPUs used for Google’s AI?

Google’s $3.2 billion investment into TeraWulf reflects a growing trend of Bitcoin mining companies using their infrastructure to meet surging AI compute demand. In the case of Bitcoin mining, advanced miners typically use Application-Specific Integrated Circuits or ASICS instead of general-purpose GPUs.

However, there are some GPUs that are used for both crypto mining and AI computing, most of them manufactured by NVIDIA. These include models like the Nvidia RTX 4090 or RTX 6000 Ada which are popular choices due to their VRAM and >>Tensor Cores, which are crucial for AI, as well as their parallel processing for mining.

Other options include the NVIDIA RTX 3060 at 12GB and older models like the NVIDIA GTX 1080 Ti or >>RTX 2060. In the second quarter of 2024, TeraWulf announced that it was committed to purchasing a 128-GPU cluster from NVIDIA.

While the specific NVIDIA model wasn’t disclosed, the company said that this cluster supports its nascent high-performance computing and AI initiatives. This means that Google’s Gemini will be able to run on TeraWulf’s NVIDIA GPUs, which are usually meant for mining crypto.

Although, cryptocurrency mining hardware becomes obsolete relatively quickly; often within a 1.5 to 3-year timeframe due to the rapid technological advancements. In this case, the technology could still be of use to AI and Machine Learning platforms like Google’s Gemini in the long run.